Sb Financial Group, Inc. · NASDAQ:SBFG
Sb Financial — Rurban Financial — Shareholder Meeting (April 2009)
42 slides from Sb Financial's shareholder meeting presentation, Apr 22, 2009
Slide 1: 26th Annual Meeting of Shareholders
26" ANNUAL MEETING OF SHAREHOLDERS NAPRIL 16, ee _~ =
Slide 2: Welcome and Call To Order
Welcome and Call To Order Mark Klein President and CEO. The State Bank and Trust Company
Slide 3: SB&T Advisory Board Members
Rurban Financial Corp. SB&T - Advisory Board Members Fulton Count Paulding County SimMtebonnal Floyd Furrow Ed Nofziger John Kauser Joe O'Neil Dr. John Saxton BillToedter Ronda Stabler Joe Short Jim Stahl RexWilliamson ima Re Pat Chaney Joe Guagenti Ron Miller Tim Stolly in RFC isa
Slide 4: Director Overview and Insight
Rurban Financial Corp. Director Overview and Insight Steve VanDemark > Chairman, Rurban Financial Corp. > Chairman, The State Bank and Trust, Company > Director, RDSI
Slide 5: Holding Company Directors
Tom Buis * Tom Callan John Compo Bob Fawcett Dick Hardgrove “Indicates rector up for reselection Rurban Financial Corp. Holding Company Directors Ken Joyce * Rita Kissner Tom Saver * Steve VanDemark Dr. Michael Walz * RC
Slide 6: Director Committees
Rurban Financial Corp. Director Committees Audit Com + Chairman: Rita Kissner ‘+ Financial Expert: Dick Hardgrove ee > Compensation Committee + Chairman: Dr. Michael Walz > Governance and Nominating Committee + Chairman: Tom Buis > Director Loan Review Committee + Chairman: Tom Callan REC
Slide 7: Directors of Subsidiaries
Rurban Financial Corp. Directors of Subsidiaries RDSI SB&T Ken Joyce, Chairman RFC Directors Don DeWitt Mark Klein John Schock Hank Thiemann Steve VanDemark Dr. Michael Walz
Slide 8: Annual Meeting Agenda
Rurban Financial Corp. Annual Meeting Agenda >Rurban Overview > Rurban’s Progress and Strategy > Questions > Election Results > Adjournment
Slide 9: Rurban Financial Corp. Profile
Rurban Financial Corp. Profile Headquarteredin Defiance, Ohio $658million in assets at December 32,2008 ‘Acquired National Bank of Montpelier on December, 2008 2a banking centersin eight countiesin Ohio and indiana Listed on NASDAQ Global Market: RENE > Two wholly-owned subsidiaries: ‘The State Bank
Slide 10: Rurban Financial Corp.
urban Financial Crp. RON Services (8A) oe
Slide 11: Rurban's Strategy
Rurban’s Strategy Growth through strong community presence in established markets Growth through acquisition and in-market de novo expansion Profitability enhanced through margin expansion and non-interest income growth Profitability improved by cost controls and leveraging infrastructure through ac
Slide 12: 2008 Versus 2007 Earnings Growth
2008 Versus 2007 Earnings Growth: 60% ‘Annual Earnings rch
Slide 13: Relative Profitability Improvement
Relative Profitability Improvement: ROAA RBNF Peer Group 0.25% 0.00% ' amor ta2me — 202008 302008 came MY = peer aroup = median ofall pubcaly waded banks in Ohi perkOW report Ges.
Slide 14: Strong Regulatory Capital
Strong Regulatory Capital: 30% over “Well Capitalized” Risk-based Capital RENE Per sioup 200% 16.00% lca | ao | sm] sam ‘2000 fl 00, com, CO EE Ry «rec oyupAltankenaionside whats between 500 ones sewed on oiseina ge
Slide 15: The State Bank and Trust Company
The State Bank and Trust Company
Slide 16: The State Bank and Trust Company Profile
The State Bank and Trust Company Profile > Founded in 1902 (Survived the “First Depression") $637 million in assets at 12/31/2008 Recent Acquisitions and De Novo Operations: + Columbus, Ohio Loan Production Ofie (12/07) + National Bank of Montpelier (2/03/08) > Trust and financial services provided
Slide 17: Foot Print and Recent Acquisition
Foot Print and Recent Acquisition
Slide 18: Banking Strategy
Banking Strategy Grow Loans through market expansion and sales activity Grow Deposits by targeting unique markets and growing electronic client access > Profitability improvement through net interest margin ‘expansion: 1 Asset Liability Management + Core Deposit Growth Profitability improvement by g
Slide 19: Loan Growth Strategies
Loan Growth Strategies wees > Market expansion + Through acquistions (Exchange Bank, Lima branches, Montpelier) 2 + LPostnhighersroutharest (Columbus andFore Way) > Buileing 2 sales culture + ggo0saler alin aso, over 289 Closed referae + ,500 alsin 2008; over ox closed ‘steals + Targeted incentive p
Slide 20: Create, Monitor & Maintain Sound Asset Quality
Create, Monitor & Maintain Sound Asset Quality SONPAS Assets ONCO/ANg. Loans Loan Loss Reserve Loans
Slide 21: Deposit Growth Strategies
Deposit Growth Strategies > High Performance Checkin salzuloB Deposits ° : $484.2MM > Growth of vate Client Group a > Improved erossslling > Remote merchant deposit capture > GronthofElectronig Transactions: 3036 ¥-0-¥ > Results: Transaction Accounts increased from 459% of total \depositsin 20070 50
Slide 22: Net Interest Margin Expansion Strategies
Net Interest Margin Expansion Strategies 42007 12000 202008 © sa2008 40.2008 iBank Only Geer Group
Slide 23: RDSI Banking Services
RDSI Banking Services
Slide 24: RDSI Data and Item Processing
RDSI Data and Item Processing Footprint ‘Operating in Eleven States Data Processing for 73 Banks tem Processing for 90 Banks os eared
Slide 25: RDSI Strategy
RDSI Strategy > Strategic Themes = Expand revenues = Improve efficiencies = Manage the risk
Slide 26: RDSI Initiatives to Expand Revenues
RDSI Initiatives to Expand Revenues > Geographic expansion: Added new state in 2008 * Added Southeast Soles Representative in 2008 Sales initiatives Addedsixnew client banks in 2008 * Sixconversions completed or scheduled for 2009, Product sales ta existing banks $1 millon in 2008 > Acquisitions > P
Slide 27: RDSI Revenue Growth
RDSI Revenue Growth Revenue 2003 2004 200520062007 2008
Slide 28: RDSI Initiatives to Increase Efficiencies
RDSI Initiatives to Increase Efficiencies > "Check 21" Accelerates Electronic Transition 100% of checks are processed using electronic image instead of paper "Staffing Down by 5.5 FTE Year-Over-Year * “image Exchange Prograrn" kicks offin 2% Quarter > Technology Improvements More Efficient Processin
Slide 29: RDSI Earnings Growth
RDSI Earnings Growth Net Income 22004 —«2005~=«2008=«0OT!=—=C«208 Taxeredits |Net Income
Slide 30: RDSI Initiatives to Manage Risk
RDSI Initiatives to Manage Risk > enterprise Risk Management > Internal Audit Performed by Plante & Moran © General Controls * Internal Penetration Reviews, * External Penetration Reviews > external Audit Performed by BKD SAS 70's Performed by Clifton Gunderson > Examination Process + FoIc * occ + F
Slide 31: Consolidated Financial Performance
RU RBAN Duane L. Sinn Chief Financial Officer = Consolidated FinhcialiPerformance \. Rurban FinanciahGorpe S Se
Slide 32: 2008 Versus 2007 Financial Highlights
2008 Versus 2007 Financial Highlights ($000) ‘lasii2008 12/31/2007 Bry Assets (milions) $6578 $5812 17% Net interest Income 175814787 + 19% Provision fr Loan Losses 620 521 +32% Nominterest income 23061-25861 +5% Non-intorest Expense 37587 98687 +3% Netincome 5217 3.257 +60% Diuted EPS: $1.08 $065 +
Slide 33: First Quarter 2009 Financial Highlights
First Quarter 2009 Financial Highlights ($000) 3131009 3131208 HA Assets (millions) $6658 © S5717 +17% Net Interest Income 5015 3817 +31% Provision for Loan Losses. 495, 192 158% Non-Intorost Income 7.448 7516 1% Non-Interest Expense 10.475 9601 +9% \ Net Income 4,108 Diluted EPS: $0.23 +3%
Slide 34: First Quarter 2009 Asset Quality Metrics
First Quarter 2009 Asset Quality Metrics ($000) 03/31/09. 03/31/08 Non-Performing Assots Dollar Amount $10,509 $6,967 4% of Total Ascot 159% 122% Not Chargo-ofs Dollar Amount $167 s16s % of Loans (Annualized) 0.15% 0.17%) Reserve For Loan Losses. Dollar Amount 95.49 s4o16 9% of Total Loans 123% 1.02
Slide 35: First Quarter 2009 Asset Quality
First Quarter 2009 Asset Quality > Approximately 51.8 Million of NPA results from National Bank of Montpelier Acquisition * Aggressive identification of Problem Loans * Initial reserve to cover loss set at $:.2:million in fourth quarter 2008 + Prudent coverage of anticipated losses + Problern Asset
Slide 36: Dividend Maintained
Dividend Maintained
Slide 37: RBNF Stock Price: One Year
RBNF Stock Price: One Year Wi Button Financial corp. i NAsoA0 Bank Index
Slide 38: RBNF Stock Price: Year-To-Date
RBNF Stock Price: Year-To-Date ia Mi eusbon Financial corp, I NAS0A0 Bankindex
Slide 39: Improving Valuation Metrics
Improving Valuation Metrics s.quatery EPS MLTM EPS. $106 $1.07
Slide 40: Rurban Financial Corp. Investment Considerations
Rurban Financial Corp. Investment Considerations > Strong fee income stream contributes additional earnings stability > Strong Operational and Financial Controls in place > Excess capital supports variety of growth strategies > Experienced management team executing a well defined vision and implemen
Slide 41: Questions?
RURBAN FINANCIAL CORP. Questions?
Slide 42: 26th Annual Meeting of Shareholders
| 26™ ANNUAL MEETING OF SHAREHOLDERS APRIL, Ss